Under what conditions can Chicken Guy intervene and resolve customer complaints on behalf of a franchisee, and what are the financial implications for the Chicken Guy franchisee?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Franchisee shall immediately resolve any customer complaints regarding the quality of food or beverages, service and/or cleanliness of the Franchised Restaurant or any similar complaints. When any customer complaints cannot be immediately resolved, Franchisee shall use reasonable efforts to resolve the customer complaints as soon as practical and shall, whenever feasible, give the customer the benefit of the doubt. If Chicken Guy, in its sole discretion, determines that its intervention is necessary or desirable to protect the System or the goodwill associated with the System, or if Chicken Guy, in its sole discretion, believes that Franchisee has failed adequately to address or resolve any customer complaints, Chicken Guy may, without Franchisee's consent, resolve any complaints and charge Franchisee an amount sufficient to cover Chicken Guy's reasonable costs and expenses in resolving the customer complaints, which amount Franchisee shall pay Chicken Guy immediately on demand.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees are expected to immediately resolve customer complaints regarding food quality, service, cleanliness, or any similar issues. Franchisees should make reasonable efforts to resolve complaints quickly, giving the customer the benefit of the doubt whenever possible.
However, Chicken Guy reserves the right to intervene and resolve customer complaints if it determines that such intervention is necessary or desirable to protect the Chicken Guy system or its associated goodwill. This intervention can also occur if Chicken Guy believes that the franchisee has failed to adequately address or resolve customer complaints.
If Chicken Guy intervenes to resolve customer complaints, the franchisee will be charged an amount sufficient to cover Chicken Guy's reasonable costs and expenses in resolving the complaints. The franchisee is required to pay this amount to Chicken Guy immediately upon demand. This means that franchisees must prioritize customer service and complaint resolution to avoid potential financial penalties and maintain the brand's reputation.